CNH Industrial (CNHI) versus The Competition Financial Analysis

CNH Industrial (NYSE: CNHI) is one of 15 publicly-traded companies in the “Heavy Machinery & Vehicles” industry, but how does it compare to its peers? We will compare CNH Industrial to similar businesses based on the strength of its profitability, valuation, earnings, risk, dividends, analyst recommendations and institutional ownership.

Valuation & Earnings

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This table compares CNH Industrial and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue

Net Income

Price/Earnings Ratio

CNH Industrial

$24.87 billion

-$252.00 million

40.38

CNH Industrial Competitors

$6.06 billion

$48.37 million

119.05

CNH Industrial has higher revenue, but lower earnings than its peers. CNH Industrial is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Dividends

CNH Industrial pays an annual dividend of $0.12 per share and has a dividend yield of 0.9%. CNH Industrial pays out 37.5% of its earnings in the form of a dividend. As a group, “Heavy Machinery & Vehicles” companies pay a dividend yield of 1.3% and pay out 33.7% of their earnings in the form of a dividend. CNH Industrial lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of current ratings for CNH Industrial and its peers, as reported by MarketBeat.

Sell Ratings

Hold Ratings

Buy Ratings

Strong Buy Ratings

Rating Score

CNH Industrial

0

2

6

0

2.75

CNH Industrial Competitors

171

892

968

17

2.41

CNH Industrial currently has a consensus target price of $12.43, indicating a potential downside of 3.77%. As a group, “Heavy Machinery & Vehicles” companies have a potential upside of 6.94%. Given CNH Industrial’s peers higher probable upside, analysts clearly believe CNH Industrial has less favorable growth aspects than its peers.

Profitability

This table compares CNH Industrial and its peers’ net margins, return on equity and return on assets.

Net Margins

Return on Equity

Return on Assets

CNH Industrial

1.66%

14.63%

1.41%

CNH Industrial Competitors

4.06%

13.41%

3.96%

Insider and Institutional Ownership

18.2% of CNH Industrial shares are owned by institutional investors. Comparatively, 82.2% of shares of all “Heavy Machinery & Vehicles” companies are owned by institutional investors. 8.9% of shares of all “Heavy Machinery & Vehicles” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

CNH Industrial has a beta of 0.71, suggesting that its share price is 29% less volatile than the S&P 500. Comparatively, CNH Industrial’s peers have a beta of 1.42, suggesting that their average share price is 42% more volatile than the S&P 500.

CNH Industrial N.V. is a capital goods company. The Company is engaged in the design, production, marketing, sale and financing of agricultural and construction equipment, trucks, commercial vehicles, buses and specialty vehicles for firefighting, defense and other uses, as well as engines, transmissions and axles for vehicles and engines under marine and power generation applications. Its segments include Agricultural Equipment, which designs, manufactures and distributes farm machinery and implements; Construction Equipment, which designs, manufactures and distributes construction equipment; Commercial Vehicles, which designs, produces and sells a range of light, medium and heavy vehicles for the transportation and distribution of goods; Powertrain, which designs, manufactures and offers a range of propulsion and transmission systems, and axles for on- and off-road applications, and Financial Services, which offers a range of financial services to dealers and customers.